Assume That a Statement of Cash Flows Reports Increases and Decreases

question 28

Multiple Choice

Assume that a statement of cash flows reports increases and decreases in current asset accounts. Which of the following is true?

• A)The statement was prepared using the direct method.
• B)Increases and decreases in current assets are reported when using both the direct and indirect methods.
• C)The statement was prepared using the indirect method.
• D)Increases and decreases in current assets are not reported on the statement of cash flows.

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